REP-300

Fertilizer Offtake
Aug’23: Urea and DAP offtake swelled up by 18% and 10x YoY
05-Sep-2023

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Fertilizer Offtake
Aug’23: Urea sales grew by 18% YoY
As per the provisional fertilizer sales data, urea dispatches in Aug’23 displayed a jump of 18% YoY Exhibit: Industry offtake
to 650k tons compared to 552k tons in SPLY. To recall, urea sales were lower last year (Aug’22) 000 tons Aug-23 Aug-22 YoY Jul-23 MoM 8MCY23 8MCY22 YoY
due to heavy rainfall across the country resulting in flash floods. On a company-wise basis, urea Urea 650 552 18% 629 3% 4,381 4,262 3%
sales of FFC and FFBL combined, FATIMA and EFERT swelled up by 14%, 16% and 33% YoY, DAP 263 26 10x 113 2x 895 678 32%
arriving at 249k tons, 121k tons and 231k tons, respectively. On a MoM basis, urea offtake CAN 77 77 0% 74 3% 524 554 -5%
depicted an uptick of 3% which is owed to the expectation of further hike in urea prices. The urea NP 268 18 15x 58 5x 754 435 73%
sales of FFC and FFBL combined, and FATIMA climbed up by 5%, and 33% MoM, respectively. Company-wise offtake
However, EFERT reported a decline of 13% MoM. On a cumulative basis, urea sales showcased an Urea
increase of 3% YoY during 8MCY23 to 4,381k tons. Urea offtake of EFERT witnessed a growth of
FFC and FFBL 249 219 14% 238 5% 1,915 1,925 -1%
13% YoY during 8MCY23 to settle at 1,532k tons. Whereas, sales of FFC and FFBL (combined), and
EFERT 231 175 33% 266 -13% 1,532 1,359 13%
FATIMA tumbled by 1% and 14%, respectively to 1,915k tons and 558k tons, respectively. On the
FATIMA 121 104 16% 91 33% 558 648 -14%
flipside, the NFML’s sales stood at 217k tons, ascending by 2.2x YoY in 8MCY23.
NFML - 11 nm - nm 217 100 2x

DAP
Exhibit: Urea offtake settled at 650k tons in Aug’23
FFC and FFBL 212 13 16x 85 2x 621 413 50%
Urea Offtake Change YoY
(000 tons) EFERT 32 9 4x 26 22% 140 143 -2%
900 833 60%
800 737 50% FATIMA 18 0 68x 0 1,200x 55 16 3.5x
631 650 40%
700 610 629 Private Import 1 4 -74% 1 -14% 79 105 -25%
574 599 598 552 583 30%
600 527
487 514 509
459 463
508 503 489
459 20% Source (s): AHL Research
500 418 430 408 10%
400
0%
300 -10%
200 -20%
100 -30%
- -40%
Nov-22
Nov-21
Dec-21

Jun-22

Dec-22

Jun-23
Jul-22

Jul-23
Oct-21

Oct-22
Sep-21

Feb-22

Apr-22

Aug-22
Sep-22

Feb-23

Apr-23

Aug-23
Jan-22

Mar-22

May-22

Jan-23

Mar-23

May-23

Source (s): NFDC, AHL Research

2
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Fertilizer Offtake
DAP offtake surged by 10x YoY in Aug’23
Exhibit: Inventory Position (Aug-23)
DAP sales augmented by 10.1x YoY to 263k tons in Aug’23, given the absence of floods in the
Fertilizer Inventory (k tons)
country as compared to last year. Similarly, DAP dispatches surged by 2.3x MoM owed to
Urea 88
anticipation of further hike in DAP prices. Therefore, DAP offtake during 8MCY23 ascended by 32%
DAP 42
YoY to 895k. On a company-specific basis, DAP sales of FFC and FFBL arrived at 212k tons in Aug’23,
CAN 9
up by 16.4x YoY |2.5x MoM. With this, FFC and FFBL’s DAP offtake during 8MCY23 clocked in at
621k tons, registering a surge of 50% YoY. Likewise, EFERT’s DAP dispatches in Aug’23 showed a NP 143

healthy growth of 4x YoY | 22% MoM to arrive at 32k tons. Hence, EFERT’s DAP offtake during Company Inventory (k tons)

8MCY23 reached 140k tons, plummeting by 2% YoY. Meanwhile, FATIMA Group’s DAP sales Urea

witnessed a massive growth of 68x YoY| 1,200x MoM to reach 18k tons in Aug’23. With this, FFC and FFBL 45

FATIMA’s DAP offtake reached 55k tons during 8MCY23, witnessing a jump of 3.5x YoY. EFERT 9
FATIMA 29
Inventory position
NFML 0
Towards the end the month, urea inventory clocked in at 88k tons in Aug’23 vis-à-vis 175k tons in
AGL 6
Jul’23. Whereas, DAP inventory stood at 42k tons as of Aug’23 compared to 237k tons in Jul’23.
DAP
FFC and FFBL 20
Exhibit: DAP offtake arrived at 263k tons in Aug’23
EFERT 7
(000 tons)
DAP Change YoY FATIMA 10
400 342 1000%
350 Private Import 5
800%
300 263 Source (s): AHL Research
221 220 236 600%
250
200 146 158 158 400%
150 117 113 113
80 95 94 96 98 200%
100 57 67 63 71 51 51 66
50 26 0%
- -200%
Dec-21

Dec-22

Jun-23
Nov-21

Jun-22
Jul-22

Nov-22

Jul-23
Oct-21

Mar-22

Oct-22

Feb-23
Mar-23
Sep-21

Feb-22

Apr-22

Sep-22

Apr-23
May-22

Aug-22

May-23

Aug-23
Jan-22

Jan-23

Source (s): NFDC, AHL Research

3
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